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Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, has been steadily rising in recent weeks, reaching a high of $0.799 on March 4.
As ADA gains momentum, investors are eyeing the potential for significant price movements. Crypto analyst Ali highlighted that Cardano seems to be mirroring its previous bullish cycle.
ADA experienced a spectacular 3,217% increase between November 2020 and August 2021, reaching all-time highs of $3.08 following an earlier consolidation. However, this rise was followed by a price drop, after which Cardano resumed consolidation.
Based on this historical narrative, Ali believes that if this pattern for ADA continues, the price could see a brief pullback before a potential parabolic surge toward the $10 mark. At the time of writing, ADA was trading down 0.41% in the last 24 hours to $0.772, albeit higher by 24.26% weekly. A surge to $10 from current prices would mean over 2,084% rise for ADA.
In recent weeks, Cardano has seen an increase in investor interest, driven by network growth and market sentiment.
Tomiwabold OlajideAli noted in a tweet over the weekend that Cardano's ascent is healthy, citing a significant increase in daily active ADA addresses, transaction volume and transactions from ADA whales.
This increasing activity reflects significant network participation and investor interest, as well as positive indicators for continued growth.
ADA price action
Cardano (ADA) began the next phase of its rally after buyers broke over the $0.68 level on March 1. ADA then went on to achieve a high of $0.799 on March 4.
If Cardano's price falls in the very near term, $0.64 might be the key support to watch for on the downside. A break and closing below this level would indicate that the bulls are losing their grip. ADA may then drop to the 50-day SMA of $0.565.
On the other hand, if the uptrend resumes after a brief pause, the price might rise to $0.90, where the bears are expected to stage a vigorous defense. If the momentum holds and investors bulldoze their way through $0.90, the surge might continue to $1.25, where bulls may confront resistance.
Alex Dovbnya
Vladislav Sopov
Dan Burgin